For the purpose of enabling
all persons owning real estate within this State to have the title thereto settled
and registered, as prescribed by the provisions of this Chapter, the superior
court of the county in which the land lies in the State shall have exclusive
original jurisdiction of all petitions and proceedings had thereupon, under
the rules of practice and procedure prescribed for special proceedings except
as herein otherwise provided. (1913, c. 90, s. 1; C.S., s.
2377.)

§ 43-2. Proceedings in rem;
vests title.

The proceedings under any
petition for the registration of land, and all proceedings in the court in
relation to registered land, shall be proceedings in rem against the land, and
the decrees of the court shall operate directly on the land, and vest and establish
title thereto in accordance with the provisions of this Chapter. (1913, c. 90, s. 2; C.S., s.
2378.)

§ 43-3. Rules of practice
prescribed by Attorney General.

The Attorney General, with the
approval of the Supreme Court, shall from time to time make, change, revise and
revoke rules of practice in the superior court for the administration of this
Chapter. He shall in like manner prescribe forms for use in such court, and in
the notation of the registry of titles of memorials, claims, liens, lis pendens,
and all other involuntary charges upon and to such registered lands. Whenever a
question shall arise in the administration of this Chapter as to the proper
method of protecting or asserting any right or interest under the law, and the
method of procedure is in doubt, it shall be the duty of the clerk or register
of deeds to notify the Attorney General, who, with the approval of the Supreme
Court, shall prescribe a rule covering such case. (1913, c. 90, s. 31; C.S., s.
2379.)

Article 2.

Officers and Fees.

§ 43-4. Examiners appointed
by clerk.

The clerk of the superior
court of each county shall appoint three or more examiners of titles, who shall
be licensed attorneys-at-law, residing in the State of North Carolina. They
shall qualify by taking oath before the clerk to faithfully discharge the
duties of such office, which oath shall be filed in the office of the clerk.
The term of office shall be two years. Examiners of titles shall have and
exercise the jurisdiction and perform the duties hereinafter prescribed, and
receive the fees herein provided. They shall not appear in or have any
connection with any proceeding instituted under the provisions of this Chapter,
and they shall be subject to removal at will by such clerk or judge of the
superior court. (1913,
c. 90, s. 3; 1917, c. 63; C.S., s. 2380.)

§ 43-5. Fees of officers.

The examiner provided for in
G.S. 43-4 shall be compensated as provided in G.S. 1-408. All plats required by
this Chapter shall comply with G.S. 47-30 and shall be recorded in the office
of the register of deeds, and the recording fee shall be that specified in G.S.
161-10 for recording plats. The fee for recording new certificates under this
Chapter shall be that specified in G.S. 161-10 for recording instruments in
general. The fee for issuing the certificate and new certificates under this
Chapter shall be that specified in G.S. 161-10 for issuing certified copies.
The fee for noting the entries or memorandum required and for the entries
noting the cancellation of mortgages and all other entries, if any, herein
provided for shall be that specified in G.S. 161-10 for recording instruments
in general.

There shall be no other fees
allowed of any nature except as herein provided, and the bonds of the register
and clerk shall be liable in case of any mistake, malfeasance, or misfeasance
as to the duties imposed upon them by this Chapter in as full a manner as such
bond is now liable by law. (1913, c. 90, s. 30; C.S., s. 2381; 1971, c. 1185, s.
1; 1977, c. 774; 1999-59, s. 1.)

Article 3.

Procedure for
Registration.

§ 43-6. Who may institute
proceedings.

Any person, firm, or
corporation, including the State of North Carolina or any political subdivision
thereof, being in the peaceable possession of land within the State and
claiming an estate of inheritance therein, may prosecute a special proceeding
in rem against all the world in the superior court for the county in which such
land is situate, to establish his title thereto, to determine all adverse
claims and have the title registered. Any number of the separate parcels of
land claimed by the petitioner may be included in the same proceeding, and any
one parcel may be established in several parts, each of which shall be clearly
and accurately described and registered separately, and the decree therein
shall operate directly upon the land and establish and vest an indefeasible
title thereto. Any person in like possession of lands within the State,
claiming an interest or estate less than the fee therein, may have his title
thereto established under the provisions of this Chapter, without the
registration and transfer features herein provided. (1913, c. 90, s. 4; C.S., s.
2382; 1963, c. 946, s. 1.)

§ 43-7. Land lying in two or
more counties.

In every proceeding to
register title, in which it is alleged in the petition or made to appear that
the land therein described, whether in one or more parcels, is situated partly
in one county and partly in another, or is situated in two or more counties,
that is to say, when an entire tract, or two or more entire tracts, are
situated in two or more counties (but not separate or several tracts in
different counties) it shall be competent to institute the proceedings before
the clerk of the superior court of any county in which any part of such tract
lying in two or more counties is situated, and said clerk shall have
jurisdiction both of the parties and of the subject matter as fully as if said
land was situated wholly in his county; but upon the entry of a final decree of
registration of title, the clerk by or before whom the same was rendered shall
certify a copy thereof to the register of deeds of every county in which said
land or any part thereof is situated, and the same shall be there filed and
recorded; and every such register of deeds, upon demand of the person entitled
and payment of requisite fees therefor, shall issue and deliver a certificate
of title for that part of said land situated in his county. This section shall apply
and become effective in all cases or proceedings heretofore conducted before
any clerk of the superior court of this State for registration of title, as in
this Chapter authorized, when the land described in the petition as an entire
tract was situated in two or more counties, as aforesaid; and upon the filing
and recording of a certified copy of the final decree or decree of registration
therein, the register of deeds shall issue and deliver a certificate of title
to the present owner or person entitled to the same, for that part of the land
situated in his county, as aforesaid, upon payment or tender of proper fees
therefor. (1919,
c. 82, s. 1; C.S., s. 2383.)

§ 43-8. Petition filed;
contents; State to be named as respondent; service on State.

Suit for registration of title
shall be begun by a petition to the court by the persons claiming, singly or
collectively, to own or have the power of appointing or disposing of an estate
in fee simple in any land, whether subject to liens or not. Infants and other
persons under disability may sue by guardian or trustee, as the case may be,
and corporations as in other cases now provided by law; but the person in whose
behalf the petition is made shall always be named as petitioner. The petition
shall be signed and sworn to by each petitioner, and shall contain a full
description of the land to be registered as hereinafter provided, together with
a plot of same by metes and bounds, corners to be marked by permanent markers
of iron, stone or cement; it shall show when, how and from whom it was
acquired, and whether or not it is now occupied, and if so, by whom; and it
shall give an account of all known liens, interests, equities and claims,
adverse or otherwise, vested or contingent, upon such land. Full names and
addresses, if known, of all persons who may be interested by marriage or
otherwise, including adjoining owners and occupants, shall be given. If any
person shall be unable to state the metes and bounds, the clerk may order a
preliminary survey.

Except when the State of North
Carolina is the petitioner, all special proceedings filed pursuant to this
Article shall name the State of North Carolina as a respondent to the action.
Service of process upon the State shall be made in accordance with G.S. 1A-1, Rule
4(j)(3). (1913,
c. 90, s. 5; C.S., s. 2384; 1979, c. 73, s. 1.)

§ 43-9. Summons issued and
served; disclaimer.

Summons shall be issued and
shall be returnable as in other cases of special proceedings, except that the
return shall be at least 60 days from the date of the summons. The summons
shall be served at least 10 days before the return thereof and the return
recorded in the same manner as in other special proceedings; and all parties
under disabilities shall be represented by guardian, either general or ad
litem. If the persons named as interested are not residents of the State of
North Carolina, and their residence is known, which must appear by affidavit,
the summons must be served on such nonresidents as is now prescribed by law for
service of summons on nonresidents.

Any party defendant to such
proceeding may file a disclaimer of any claim or interest in the land described
in the petition, which shall be deemed an admission of the allegations of the
petition, and the decree shall bar such party and all persons thereafter
claiming under him, and such party shall not be liable for any costs or
expenses of the proceeding except such as may have been incurred by reason of
his delay in pleading. (1913, c. 90, s. 6; C.S., s. 2385; 1967, c. 954, s. 3.)

§ 43-10. Notice of petition
published.

In addition to the summons
issued, prescribed in the foregoing section [§ 43-9], the clerk of the court
shall, at the time of issuing such summons, publish a notice of the filing
thereof containing the names of the petitioners, the names of all persons named
in the petition, together with a short but accurate description of the land and
the relief demanded, in some secular newspaper published in the county wherein
the land is situate, and having general circulation in the county; and if there
be no such paper, then in a newspaper in the county nearest thereto and having
general circulation in the county wherein the land lies, once a week for eight
issues of such paper. The notice shall set forth the title of the cause and in
legible or conspicuous type the words "To whom it may concern," and
shall give notice to all persons of the relief demanded and the return day of
the summons: Provided, that no final order or judgment shall be entered in the
cause until there is proof and adjudication of publication as in other cases of
publication of notice of summons. The provisions of this section, in respect to
the issuing and service of summons and the publication of the notice, shall be
mandatory and essential to the jurisdiction of the court to proceed in the
cause: Provided, that the recital of the service of summons and publication in
the decree or in the final judgment in the cause, and in the certificate issued
to the petitioner as hereinafter provided, shall be conclusive evidence
thereof. The clerk of the court shall also record a copy of said notice in the
lis pendens docket of his office and cross-index same as other notices of lis
pendens and shall also certify a copy thereof to the superior court of each
county in which any part of said land lies, and the clerk thereof shall record
and cross-index same in the lis pendens records of his office as other notices
of lis pendens are recorded and cross-indexed. (1913, c. 90, s. 7; 1915, c. 128, s. 1; 1919, c. 82,
s. 2; C.S., s. 2386; 1925, c. 287.)

§ 43-11. Hearing and decree.

(a) Referred to
Examiner. - Upon the return day of the summons the petition shall be set down
for hearing upon the pleadings and exhibits filed. If any person claiming an
interest in the land described in the petition, or any lien thereon, shall file
an answer, the petition and answer, together with all exhibits filed, shall be
referred to the examiner of titles, who shall proceed, after notice to the
petitioner and the persons who have filed answer or answered, to hear the cause
upon such parol or documentary evidence as may be offered or called for and
taken by him, and in addition thereto make such independent examination of the
title as may be necessary. Upon his request the clerk shall issue a commission
under the seal of the court for taking such testimony as shall be beyond the
jurisdiction of such examiner.

(b) Examiner's Report. -
The examiner shall, within 30 days after such hearing, unless for good cause
the time shall be extended, file with the clerk a report of his conclusions of
law and fact, setting forth the state of such title, any liens or encumbrances
thereon, by whom held, amount due thereon, together with an abstract of title
to the lands and any other information in regard thereto affecting its
validity.

(c) Exceptions to
Report. - Any of the parties to the proceeding may, within 20 days after such
report is filed, file exceptions, either to the conclusions of law or fact.
Whereupon the clerk shall transmit the record to the judge of the superior
court for his determination thereof; such judge may on his own motion certify
any issue of fact arising upon any such exceptions to the superior court of the
county in which the proceeding is pending, for a trial of such issue by jury,
and he shall so certify such issue of fact for trial by jury upon the demand of
any party to the proceeding. If, upon consideration of such record, or the
record and verdict of issues to be certified and tried by jury, the title be
found in the petitioner, the judge shall enter a decree to that effect,
ascertaining all limitations, liens, etc., declaring the land entitled to
registration accordingly, and the same, together with the record, shall be docketed
by the clerk of the court as in other cases, and a copy of the decree certified
to the register of deeds of the county for registration as hereinafter
provided. Any of the parties may appeal from such judgment to the appellate
division, as in other special proceedings.

(d) No Judgment by
Default. - No judgment in any proceeding under this Chapter shall be given by
default, but the court must require an examination of the title in every
instance except as respects the rights of parties who, by proper pleadings,
admit the petitioner's claim. If, upon the return day of the summons and the
day upon which the petition is set down for hearing, no answer be filed, the
clerk shall refer the same to the examiner of titles, who shall, after notice
to the petitioner, proceed to examine the title, together with all liens or
encumbrances set forth or referred to in the petition and exhibits, and shall
examine the registry of deeds, mortgages, wills, judgments, mechanic liens and
other records of the county, and upon such examination he shall, as
hereinbefore provided, report to the clerk the condition of the title, with a
notice of liens or encumbrances thereon. The examiner shall have power to take
and call for evidence in such case as fully as if the application were being
contested. If the title shall be found to be in the petitioner, the clerk shall
enter a decree to that effect and declaring the land entitled to registration,
with entry of any limitations, liens, etc., and shall certify the same for
registration, as hereinbefore provided, after approval by the judge of the
superior court. (1913,
c. 90, s. 8; C.S., s. 2387; 1969, c. 44, s. 48.)

§ 43-12. Effect of decree; approval of judge.

Every decree rendered as hereinbefore provided shall bind the
land and bar all persons and corporations claiming title thereto or interest
therein; quiet the title thereto, and shall be forever binding and conclusive
upon and against all persons and corporations, whether mentioned by name in the
order of publication, or included under the general description, "to whom
it may concern"; and every such decree so rendered, or a duly certified
copy thereof, as also the certificate of title issued thereon to the person or
corporation therein named as owner, or to any subsequent transferee or
purchaser, shall be conclusive evidence that such person or corporation is the
owner of the land therein described, and no other evidence shall be required in
any court of this State of his, her, or its right or title thereto. It shall
not be an exception to such conclusiveness that a person is a minor, is
incompetent, or is under any disability, but such person may have recourse upon
the indemnity fund hereinafter provided for, for any loss the person may suffer
by reason of being so concluded. Notwithstanding the provisions of G.S. 43-10,
such decrees shall not be binding on and include the State of North Carolina or
any of its agencies unless the State of North Carolina is made a party to the
proceeding and notice of said proceeding and copy of petition, etc., are served
upon the State of North Carolina as provided in this Chapter. Such decrees
shall, in addition to being signed by the clerk of the court, be approved by
the judge of the superior court, who shall review the whole proceeding and have
power to require any reformation of the process, pleading, decrees or entries. (1913, c. 90, s. 9; 1919, c. 82, s. 3; C.S., s. 2388; 1925,
c. 263; 1979, c. 73, s. 2; 2011-29, s. 4.)

Article 4.

Registration and Effect.

§ 43-13. Manner of
registration.

(a) The register of
deeds shall register and index, as hereinafter provided, the decree of title
before mentioned and all subsequent transfers of title, and note all voluntary
and involuntary transactions in any wise affecting the title to the land,
authorized to be entered thereon in the real property records and indexes. The
certificate of title and the entries for voluntary and involuntary transactions
shall be indexed on the grantor index in the name "Registered estate no.
________" and on the grantee index in the name of the registered owner. If
the title be subject to trust, condition, encumbrance or the like, the words
"in trust," "upon condition," "subject to
encumbrance," "life estate," or like appropriate insertion shall
indicate the fact and fix any person dealing with such certificate with notice
of the particulars of such limitations upon the title as appears upon the
registry, and no new or additional certificate number shall be issued in such
circumstances. No erasure, alteration, or amendment shall be made upon the
registry after entry and issuance of a certificate of title except by order of
a court of competent jurisdiction.

(b) When a voluntary or
involuntary transaction is entered on a certificate of title, the certificate
with the new entry shall be copied and recorded and indexed in the real
property records and indexes. The copied certificate shall be indexed on the
grantor index in the name "Registered estate no. ________" and on the
grantee index in the name of the registered owner. (1913, c. 90, s. 10; 1919, c.
236, s. 1; C.S., s. 2389; 1999-59, s. 2.)

§ 43-14. Cross-indexing of
lands by registers of deeds.

Where any land is brought into
the Torrens System and under said System is registered in the public records of
the register's office, said register shall cross-index the registration in the
general cross index for deeds in his office. (1931, c. 286, s. 2.)

§ 43-15. Certificate issued.

Upon the registration of such
decree the register of deeds shall issue an owner's certificate of title, under
the seal of his office, which shall be delivered to the owner or his agent duly
authorized, and shall be substantially as follows:

State of North Carolina - County
of _________________________________________________

The certificate of ____________________________________________________________

I hereby certify that the
title is registered in the name of ____________ to and situate in said county
and State, described as follows: (Here describe land as in decree.)

Estate____________ (here name
the estate and any limitation or encumbrance thereon, as fee simple, upon
condition, in trust, subject to encumbrance, and the like).

Under decree of the land court
of ____________county, entitled ____________.

Registered No. ____, Book No.
____, page ____.

Witness my hand and seal, at
office at ________ this _____________ day of ________, A.D. ________

(Seal)_________________________________

Register
of Deeds

(1913,
c. 90, s. 10; C.S., s. 2390; 1999-456, s. 59.)

§ 43-16. Certificates numbered;
entries thereon.

All certificates of title to
land in the county shall be numbered consecutively, which number shall be
retained as long as the boundaries of the land remain unchanged, and a
separate page or more, with appropriate space for subsequent entries, shall be
devoted to each title in the registration of titles book for the county. Every
entry made upon any certificate of title in such book or upon the owner's
certificate, under any of the provisions of this Chapter, shall be signed by the
register of deeds and minutely dated in conformity with the dates shown by the
entry book. (1913,
c. 90, s. 11; C.S., s. 2391.)

§ 43-17. New certificate
issued, if original lost.

Whenever an owner's
certificate of title is lost or destroyed, the owner or his personal
representative may petition the court for the issuance of a new certificate.
Notice of such petition shall be published once a week for four successive
weeks, under the direction of the court, in some convenient newspaper, and
noted upon the registry of titles, and upon satisfactory proof having been
exhibited before it that the certificate has been lost or destroyed the court
may direct the issuance of a new certificate, which shall be appropriately
designated and take the place of the original, but at least 30 full days shall
elapse between the filing of the petition and making the decree for such new
certificate. (1913,
c. 90, s. 24; C.S., s. 2392.)

§ 43-17.1. Issuance of
certificate upon death of registered owner; petition and contents; dissolution
of corporation; certificate lost or not received by grantee.

Upon the death of any person
who is the registered owner of any estate or interest in land which has been
brought under this Chapter, a petition may be filed with the clerk of the
superior court of the county in which the title to such land is registered by
anyone having any estate or interest in the land, or any part thereof, the
title to which has been registered under the terms of this Chapter, attaching
thereto the registered certificate of title issued to the deceased holder and
setting forth the nature and character of the interest or estate of such
petitioner in said land, the manner in which such interest or estate was
acquired by the petitioner from the deceased person - whether by descent, by
will, or otherwise, and setting forth the names and addresses of any and all
other persons, firms or corporations which may have any interest or estate therein,
or any part thereof, and the names and addresses of all persons known to have
any claims or liens against the said land; and setting forth the changes which
are necessary to be made in the registered certificate of title to land in
order to show the true owner or owners thereof occasioned by the death of the
registered owner of said certificate. Such petition shall contain all such
other information as is necessary to fully inform the court as to the status of
the title and the condition as to all liens and encumbrances against said land
existing at the time the petition is filed, and shall contain a prayer for such
relief as the petitioner may be entitled to under the provisions hereof. Such
petition shall be duly verified.

Like procedure may be followed
as herein set forth upon the dissolution of any corporation which is the
registered owner of any estate or interest in the land which has been brought
under this Chapter.

In the event the registered
certificate of title has been lost and after due diligence cannot be found,
and this fact is made to appear by allegation in the petition, such registered
certificate of title need not be attached to the petition as hereinabove
required, but the legal representatives of the deceased registered owner shall
be made parties to the proceeding. If such persons are unknown or, if known
cannot after due diligence be found within the State, service of summons upon
them may be made by publication of the notice prescribed in G.S. 43-17.2. In
case the registered owner is a corporation which has been dissolved, service of
summons upon such corporation and any others who may have or claim any interest
in such land thereunder shall be made by publication of the notice containing
appropriate recitals as required by G.S. 43-17.2.

If any registered owner has by
writing conveyed or attempted to convey a title to any registered land without
the surrender of the certificate of title issued to him, the person claiming
title to said lands under and through said registered owner by reason of his
or its conveyance may file a petition with the clerk of the superior court of
the county in which the land is registered and in the proceeding under which
the title was registered praying for the cancellation of the original
certificate and the issuance of the new certificate. Upon the filing of such
petition notice shall be published as prescribed in G.S. 43-17.2. The clerk of
the superior court with whom said petition is filed shall by order determine
what additional notice, if any, shall be given to registered owners. If the
registered owner is a natural person, deceased, or a corporation dissolved the
court may direct what additional notice, if any, shall be given. The clerk
shall hear the evidence, make findings of fact, and if found as a fact that the
original certificate of the registered owner has been lost and cannot be found,
shall enter his order directing the register of deeds to cancel the same and to
issue a new certificate to such person or persons as may be entitled thereto,
subject to such claims or liens as the court may find to exist.

Any party within 10 days from
the rendition of such judgment or order by the clerk of superior court of the
county in which said land is registered may appeal to the superior court
during a session of court, where the cause shall be heard de novo by the judge,
unless a jury trial be demanded, in which event the issues of fact shall be
submitted to a jury. From any order or judgment entered by the superior court
during a session of court an appeal may be taken to the appellate division in
the manner provided by law. (1943, c. 466, s. 1; 1945, c. 44; 1969, c. 44, s. 49;
1971, c. 1185, s. 2.)

§ 43-17.2. Publication of
notice; service of process.

Upon the filing of such duly
verified petition, the petitioner shall cause to be published once a week for
four weeks, in some newspaper having a general circulation in the county in
which the land is situated, a notice signed by the clerk of the superior court,
setting forth in substance the nature of the petition, a description of the
land affected thereby, and the relief therein prayed for, and notifying all
persons having or claiming any interest or estate in the land to appear at a
time therein specified, which shall be at least 30 days after the first
publication of said notice, to show cause, if any exists, why the relief prayed
for in the petition should not be granted. An affidavit shall be filed by the
publisher with the clerk of the court, showing a full compliance of this
requirement. Upon a filing of said petition, the petitioner shall cause the
summons, with a copy of the petition, to be served upon all persons, firms or
corporations known to have any interest or estate in the lands referred to in
the petition, and the personal representative, the devisees, if any, and all
heirs at law of the deceased registered owner of said land. In the event any of
the persons upon whom service of summons is to be made are nonresidents of the
State of North Carolina, service may be made by publication in the manner
prescribed by law for the service of summons in special proceedings. (1943, c. 466, s. 1.)

§ 43-17.3. Answer by person
claiming interest.

Any person asserting a claim
or any interest in such registered land may, at any time prior to the hearing
provided for in G.S. 43-17.4, file such answer or other pleadings as may be
proper, asserting his rights or claims to the property referred to in the
petition. (1943,
c. 466, s. 1.)

§ 43-17.4. Hearing by clerk
of superior court; orders and decrees; cancellation of old certificate and
issuance of new certificate.

The clerk of the superior
court shall hear and determine all matters presented upon the petition and such
pleadings as may be filed in this proceeding, and shall make such orders and
decrees therein as may be found to be proper from the facts as ascertained and
determined by the court. The court is authorized and empowered to order and
direct that the outstanding registered certificate of title to the land shall
be surrendered and cancelled in the office of the register of deeds, and that a
new certificate of title shall be issued, showing therein the owner or owners
of the land described in the original certificate and the nature and character
of such ownership: Provided, the clerk of the superior court shall not
authorize the issuance of the new certificate of title until the fees provided
in G.S. 43-49 have been paid. Upon the surrender and cancellation by the
register of deeds of the outstanding certificate of title, the new certificate
of title shall be registered and cross-indexed in the same manner provided for
the registration of the original certificate, and the register of deeds shall
issue a new certificate of title in the same manner and form as provided for
the original certificate. The said new certificate shall have the same force
and effect as the original certificate of title and shall be subject to the
same provisions of law with reference thereto. (1943, c. 466, s. 1.)

§ 43-17.5. Issuance of new
certificate validated.

Whenever heretofore any
registered certificate of title has been surrendered by the heirs or devisees
of any deceased registered owner of any registered title and the registered
certificate of title of such deceased owner has been surrendered and canceled
and a new certificate of title issued to a purchaser or to such heirs or
devisees, the same is hereby validated and confirmed and made effectual to the
same extent as though such new certificate had been issued in compliance with
the provisions of this Chapter. (1943, c. 466, s. 1.)

Every registered owner of any
estate or interest in land brought under this Chapter shall, except in cases of
fraud to which he is a party or in which he is a privy, without valuable
consideration paid in good faith, and except when any registration has been
procured through forgery, hold the land free from any and all adverse claims,
rights or encumbrances not noted on the certificate of title, except

(1) Liens, claims or
rights arising or existing under the laws or Constitution of the United States
which the statutes of this State cannot require to appear of record under
registry laws;

(2) Taxes and
assessments thereon due the State or any county, city or town therein, but not
delinquent;

(3) Any lease for a term
not exceeding three years, under which the land is actually occupied. (1913, c. 90, s. 25; C.S.,
s. 2393.)

Any person making any claim to
or asserting any lien or charge upon registered land, existing at the initial
registry of the same and not shown upon the register or adverse to the title of
the registered owner, and for which no other provision is herein made for
asserting the same in the registry of titles, may make an affidavit thereof
setting forth his interest, right, title, lien or demand, and how and under
whom derived, and the character and nature thereof. The affidavit shall state
his place of residence and designate a place at which all notices relating
thereto may be served. Upon the filing of such affidavit in the office of the
clerk of the superior court, the clerk shall order a note thereof as in the
case of charges or encumbrances, and the same shall be entered by the register
of deeds. Action shall be brought upon such claim within six months after the
entry of such note, unless for cause shown the clerk shall extend the time.
Upon failure to commence such action within the time prescribed therefor, the
clerk shall order a cancellation of such note. If any person shall wantonly or
maliciously or without reasonable cause procure such notation to be entered
upon the registry of titles, having the effect of a cloud upon the registered
owner's title, he shall be liable for all damages the owner may suffer thereby.
(1913, c. 90, s.
25; C.S., s. 2394.)

§ 43-20. Decree and
registration run with the land.

The obtaining of a decree of
registration and the entry of a certificate of title shall be construed as an
agreement running with the land, and the same shall ever remain registered
land, subject to the provisions of this Chapter and all amendments thereof. (1913, c. 90, s. 26; C.S., s.
2395.)

§ 43-21. No right by adverse
possession.

No title to nor right or
interest in registered land in derogation of that of the registered owner shall
be acquired by prescription or adverse possession. (1913, c. 90, s. 27; C.S., s.
2396.)

§ 43-22. Jurisdiction of
courts; registered land affected only by registration.

Except as otherwise specially
provided by this Chapter, registered land and ownership therein shall be
subject to the jurisdiction of the courts in the same manner as if it had not
been registered; but the registration shall be the only operative act to
transfer or affect the title to registered land, and shall date from the time
the writing, instrument or record to be registered is duly filed in the office
of the register of deeds, subject to the provisions of this Chapter; no
voluntary or involuntary transaction shall affect the title to registered lands
until registered in accordance with the provisions of this Chapter: Provided,
that all mortgages, deeds, surrendered and canceled certificates, when new
certificates are issued for the land so deeded, the other paper-writings, if
any, pertaining to and affecting the registered estate or estates herein
referred to, shall be filed by the register of deeds for reference and
information, but the consolidated real property records shall be and constitute
sole and conclusive legal evidence of title, except in cases of mistake and
fraud, which shall be corrected in the methods now provided for the correction
of papers authorized to be registered. (1913, c. 90, s. 28; C.S., s. 2397; 2000-140, s. 42(a).)

§ 43-23. Priority of right.

In case of conflicting claims
between the registered owners the right, title or estate derived from or held
under the older certificate of title shall prevail. (1913, c. 90, s. 29; C.S., s.
2398.)

§ 43-24. Compliance with this
Chapter due registration.

When the provisions of this
Chapter have been complied with, all conveyances, deeds, contracts to convey or
leases shall be considered duly registered, as against creditors and
purchasers, in the same manner and as fully as if the same had been registered
in the manner heretofore provided by law for the registration of conveyances. (1913, c. 90, s. 32; C.S., s.
2399.)

§ 43-25. Release from
registration.

Whenever the record owner of
any estate in lands, the title to which has been registered or attempted to be
registered in accordance with the provisions of this Chapter, desires to have
such estate released from the provisions of said Chapter insofar as said
Chapter relates to the form of conveyance, so that such estate may ever
thereafter be conveyed, either absolutely or upon condition or trust, by the
use of any desired form of conveyance other than the certificate of title
prescribed by said Chapter, such owner may present his owner's certificate of
title to such registered estate to the register of deeds of the county wherein
such land lies, with a memorandum or statement written by him on the margin
thereof in the words following, or words of similar import, to wit: "I (or
we),_________ , being the owner (or owners) of the registered estate evidenced
by this certificate of title, do hereby release said estate from the provisions
of Chapter 43 of the General Statutes of North Carolina insofar as said Chapter
relates to the form of conveyance, so that hereafter the said estate may, and
shall be forever until again hereafter registered in accordance with the
provisions of said Chapter and acts amendatory thereof, conveyed, either
absolutely or upon condition or trust, by any form of conveyance other than the
certificate of title prescribed by said Chapter, and in the same manner as if
said estate had never been registered." Which said memorandum or statement
shall further state that it is made pursuant to the provisions of this section,
and shall be signed by such record owner and attested by the register of deeds
under his hand and official seal, and a like memorandum or statement so
entered, signed and attested upon the margin of the record of the said owner's
certificate of title in the consolidated real property records in said
register's office, with the further notation made and signed by the register of
deeds on the margin of the certificate of title in the consolidated real
property records showing that such entry has been made upon the owner's
certificate of title; and thereafter any conveyance of such registered estate,
or any part thereof, by such owner, his heirs or assigns, by means of any
desired form of conveyance other than such certificate of title shall be as
valid and effectual to pass such estate of the owner according to the tenor and
purport of such conveyance in the same manner and to the same extent as if such
estate had never been so registered. (Ex. Sess. 1924, c. 40; 2000-140, s. 42(b).)

Article 5.

Adverse Claims and
Corrections after Registration.

§ 43-26. Limitations.

No decree of registration
heretofore entered, and no certificate of title heretofore issued pursuant
thereto, shall be adjudged invalid, revoked, or set aside, unless the action or
proceeding in which the validity of such decree of registration or certificate
of title issued pursuant thereto is attacked or called in question be commenced
or the defense alleging the invalidity thereof be interposed within 12 months
from March 10, 1919.

No decree of registration
hereafter entered and no certificate of title hereafter issued pursuant thereto
shall be adjudged invalid or revoked or set aside, unless the action or
proceeding in which the validity of such decree or of the certificate of title
issued pursuant thereto is attacked or called in question be commenced or the
defense alleging the invalidity thereof be interposed within 12 months from
the date of such decree.

No action or proceeding for
the recovery of any right, title, interest, or estate in registered land
adverse to the title established and adjudicated by any decree of registration
heretofore entered shall be maintained unless such action or proceeding be
commenced within 12 months from the date last mentioned; and no action or
proceeding for the recovery of any right, title, interest, estate in registered
land, adverse to the right established by any decree of registration hereafter
shall be maintained unless such action or proceeding be commenced within 12
months from the date of such decree.

No action or proceeding for
the enforcement or foreclosure of any lien upon or charge against registered
land which existed at the date when any decree of registration was heretofore
entered, and which was not recognized or established by such decree, shall be
maintained, unless such action or proceeding be commenced within 12 months from
the date above mentioned; and no action or proceeding for the enforcement or
foreclosure of any lien upon or charge against registered land in existence at
the date of any decree of registration hereafter entered, and which is not
recognized and established by such decree, shall be maintained, unless such
action or proceeding be commenced within 12 months from the date of such
decree. (1919,
c. 236, s. 1; C.S., s. 2400.)

Any person claiming any right,
title, or interest in registered land adverse to the registered owner thereof,
arising subsequent to the date of the original decree of registration, may, if
no other provision is made for registering the same, file with the register of
deeds of the county in which such decree was rendered or certificate of title
thereon was issued, a verified statement in writing, setting forth fully the
right, title, or interest so claimed, how or from whom it was acquired, and a
reference to the number, book, and page of the certificate of title of the
registered owner, together with a description of the land by metes and bounds,
the adverse claimant's place of residence and his post-office address, and, if
a nonresident, he shall designate or appoint the said register of deeds to
receive all notices directed to or to be served upon such adverse claimant in
connection with the claim by him made, and such statement shall be noted and
filed by said register of deeds as an adverse claim; but no action or
proceeding to enforce such adverse claim shall be maintained unless the same be
commenced within six months of the filing of the statement thereof. (1919, c. 236, s. 1; C.S., s.
2401.)

§ 43-28. Suit to enforce
adverse claim; summons and notice necessary.

Upon the institution of any
action or proceeding to enforce such adverse claim, notice thereof shall be
served upon the register of deeds, who shall enter upon the registry a
memorandum that suit has been brought or proceeding instituted to determine the
validity of such adverse claim; and summons or notice shall be served upon the
holder or claimant of the registered title or certificate or other person
against whom such adverse claim is alleged, as provided by law for the
institution of suits or proceedings in the courts of this State.

If no notice of the
institution of an action or proceeding to enforce an adverse claim be served
upon the register of deeds and upon the holder of the registered title or
certificate, or other person, as aforesaid, within seven months from the date
of filing the statement of adverse claim, the register of deeds shall cancel
upon the registry the adverse claim so filed and make a memorandum setting out
that no notice of suit or proceeding to enforce the same had been served upon
him within seven months as herein required, and that such adverse claim was
therefore canceled; and thereafter no action or proceeding shall be begun or
maintained to enforce such adverse claim in any of the courts of this State. (1919, c. 236, s. 1; C.S., s.
2402.)

§ 43-29. Judgment in suit to
enforce adverse claim; register to file.

The court shall certify its
judgment to the register of deeds; if such adverse claim be held valid, the
register of deeds shall make such entry upon the registry and upon the owner's
certificate of title as may be directed by the court, or he may file and record
a certified copy of the judgment or order of the court thereon; if such adverse
claim be held invalid the register of deeds shall cancel such adverse claim
upon the registry, noting thereon that the same was done by order or judgment
of the court, or he may file and record a certified copy of the judgment or
order of the court thereon. (1919, c. 236, s. 1; C.S., s. 2403.)

Any registered owner or other
claimant under the registered title may at any time apply to the court in which
the original decree was entered, by petition, setting out that registered
interests of any description, whether vested, contingent, expectant or
inchoate, have terminated and ceased, or that new interests have arisen or been
created which do not appear upon the certificate, or that any error or omission
was made in entering or issuing the certificate or any duplicate thereof, or
that the name of any person on the certificate has been changed, or that the
registered owner had married or, if registered as married, that the marriage
has been terminated, or that a corporation which owned registered lands has
been dissolved, without conveying the same or transferring its certificate
within three years after the dissolution, or any other reasonable and proper
ground of correction or relief; and such court may hear and determine the
petition after notice to all parties in interest, and may make such order or
decree as may be appropriate and lawful in the premises; but nothing in this
section shall be construed to authorize any such court to open any original
decree of registration which was entered more than 12 months prior to the
filing of such petition, and nothing shall be done or ordered by the court to
divest or impair the title or other interest of a purchaser who holds a
transfer or certificate of title for value and in good faith. No action or
proceeding shall be commenced or maintained to set up or establish any right,
claim, interest or estate adverse to the order or decree or certificate of
title issued thereon made or entered upon any petition or other proceeding
authorized by this section, unless the same shall be brought and instituted
within six months from the date of such order or decree authorized by this
section. (1919,
c. 236, s. 1; C.S., s. 2404.)

Article 6.

Method of Transfer.

§ 43-31. When whole of land
conveyed.

Whenever the whole of any
registered estate is transferred or conveyed the same shall be done by a
transfer or conveyance attached to the certificate substantially as follows:

The owners (giving the names
of the parties owning land described in the certificate) hereby, in
consideration of __________________ dollars, sell and convey to the purchaser
(giving name of purchaser) the lot or tract of land, as the case may be,
described in the certificate of title hereto attached. The transfer shall be
indexed on the grantor and grantee indexes in the same manner as deeds are
indexed.

The same shall be signed and
properly acknowledged by the parties and shall have the full force and effect
of a deed in fee simple: Provided, that if the sale shall be in trust, upon
condition, with power to sell or other unusual form of conveyance, the same
shall be set out in the transfer, and shall be entered upon the consolidated
real property records as hereinafter provided; that upon presentation of the
transfer, together with the certificate of title, to the register of deeds, the
transaction shall be duly noted and registered in accordance with the
provisions of this Chapter, and certificate of title so presented shall be
canceled and a new certificate with the same number issued to the purchaser
thereof, which new certificate shall fully refer by number and also by name of
holder to former certificate just canceled. (1913, c. 90, s. 12; C.S., s. 2405; 1999-59, s. 3;
2000-140, s. 42(c).)

§ 43-32. Conveyance of part
of registered land.

The transfer of any part of a
registered estate, either of an undivided interest therein or of a separate lot
or parcel thereof, shall be made by an instrument of the transfer or conveyance
similar in form to that herein provided for the transfer of the whole of any
registered estate, to which shall be attached the certificate of title of such
registered estate. In case of the transfer of an undivided interest in a
registered estate, such instrument of transfer or conveyance shall accurately
specify and describe the extent and amount of the interest transferred and of
the interest retained, respectively. In case of a transfer of a separate lot or
parcel of a registered estate, such instrument of transfer or conveyance shall
describe the lot or parcel transferred either by metes and bounds or by
reference to the map or plat attached thereto, and shall in every case be
accompanied by a map or plat having clearly indicated thereon the boundaries of
the whole of the registered estate and of the lot or parcel to be transferred,
but a new survey of the original registered estate shall not be required. The
transfer shall be indexed on the grantor and grantee indexes in the same manner
as deeds are indexed. (1919, c. 82, s. 4; C.S., s. 2406; 1999-59, s. 4.)

§ 43-33. Duty of register of
deeds upon part conveyance.

Upon presentation to the
register of deeds of an instrument of transfer or conveyance of an undivided
interest in a registered estate, in proper form as above prescribed, it shall
be his duty to cancel the certificate of title attached thereto and to issue to
each owner a new certificate of title, each bearing the same number as the
original certificate of title and accurately specifying and describing the
extent and the amount of the interest retained or of the interest transferred,
as the case may be. Upon presentation to the register of deeds of an instrument
of transfer or conveyance of a separate lot or parcel of a registered estate,
in proper form as above prescribed, it shall be his duty to cancel the certificate
of the title attached thereto and to issue to each owner a new certificate of
title bearing a new number and describing the separate lot or parcel retained
or transferred, as the case may be, either by metes and bounds or by reference
to a map or plat thereto attached. The register of deeds is responsible for
determining that each new certificate of title contains a description of the
property transferred or retained but not for verifying the accuracy of any
description. (1919,
c. 82, s. 4; C.S., s. 2407; 1999-59, s. 5.)

§ 43-34. Subdivision of
registered estate.

Any owner of a registered
estate who may desire to subdivide the same may make application in writing to
the register of deeds for the issuance of a new certificate of title for each
subdivision, to which application shall be attached a map or plat having
clearly indicated thereon the boundaries of the whole of the registered estate
in question and of each lot or parcel for which he desires a new certificate of
title. Thereupon it shall be the duty of the register of deeds, upon payment by
such applicant of necessary surveyor's fees, if any are required, and of the
amount herein provided for issuing the certificates of title and recording the
map, to cancel the certificate of title attached to said application and to
issue to such owner new certificates of title, each bearing a new number, for
each lot or parcel shown upon the said map, describing such lot or parcel in
such certificates either by metes and bounds or by reference to a map or plat attached
thereto. (1919,
c. 82, s. 4; C.S., s. 2408.)

§ 43-35. References and cross
references entered on register.

In all cases the register of
deeds shall place upon the consolidated real property records and upon the
certificate of title of such registered estate therein, references and cross
references to the new certificates issued as above provided, in accordance with
the provisions of this Article, and the new certificates issued shall fully
refer by number and by name of the holder to the canceled certificate in place
of which they are issued. (1919, c. 82, s. 4; C.S., s. 2409; 2000-140, s.
42(d).)

§ 43-36. When land conveyed
as security.

(a) Whole Land
Conveyed. - Whenever the owner of any registered estate shall desire to convey
same as security for debt, it may be done in the following manner, by a short
form of transfer, substantially as follows, to wit:

A.B. and wife (giving names of
all owners or holders of certificates and their wives) hereby transfer to C.D.
the tract or lot of land described as No. ________ in registration of titles
book for ________ County, a certificate for the title for same being hereto
attached, to secure a debt of ________ dollars, due to ________, of
____________ County and State, on the ________ day of ____________, ________,
evidenced by bond (or otherwise as the case may be) dated the ________ day of
____________, ________. In case of default in payment of said debt with accrued
interest, ________ days notice of sale required.

The same shall be signed and
properly acknowledged by the parties making same, and shall be presented,
together with the owner's certificate, to the register of deeds, whose duty it
shall be to note upon the owner's certificate and upon the certificate of title
in the consolidated real property records the name of the trustee, the amount
of debt, and the date of maturity of same.

(b) Part of Land
Conveyed. - When a part of the registered estate shall be so conveyed, the
register of deeds shall note upon the consolidated real property records and
owner's certificate the part so conveyed, and if the same be required and the
proper fee paid by the trustee, shall issue what shall be known as a partial
certificate, over his hand and seal, setting out the portion so conveyed.

(c) Effect of Transfer.
- All transfers by such short form shall convey the power of sale upon due
advertisement at the county courthouse and in some newspaper published in the
county, or adjoining county, in the same manner and as fully as is now provided
by law in the case of mortgages and deeds of trust and default therein.

(d) Other Encumbrances
Noted. - All registered encumbrances, rights or adverse claims affecting the
estate represented thereby shall continue to be noted, not only upon the
certificate of title in the consolidated real property records, but also upon
the owner's certificate, until same shall have been released or discharged. And
in the event of second or other subsequent voluntary encumbrances the holder of
the certificate may be required to produce such certificate for the entry
thereon or attachment thereto of the note of such subsequent charge or
encumbrance as provided in this Article.

(e) Other Forms of
Conveyance May Be Used. - Nothing in this section nor this Chapter shall be
construed to prevent the owner from conveying such land, or any part of the
same, as security for a debt by deed of trust or mortgage in any form which may
be agreed upon between the parties thereto, and having such deed of trust or
mortgage recorded in the office of the register of deeds as other deeds of
trust and mortgages are recorded: Provided, that the book and page of the
record at which such deed of trust or mortgage is recorded shall be entered by
the register of deeds upon the owner's certificate and also on the consolidated
real property records.

(f) Sale under Lien;
New Certification. - Upon foreclosure of such deed of trust or mortgage, or
sale under execution for taxes or other lien on the land, the fact of such
foreclosure or sale shall be reported by the trustee, mortgagee or other person
authorized to make the same, to the register of deeds of the county in which
the land lies, and, upon satisfactory evidence thereof, it shall be his duty to
call in and cancel the outstanding certificate of title for the land, so sold,
and to issue a new certificate in its place to the purchaser or other person
entitled thereto; and the production of such outstanding certificate and its
surrender by the holder thereof may be compelled, upon notice to him, by motion
before and order of the clerk of the superior court in the original proceeding
or the clerk of the superior court of the county in which the land lies; but
the right of appeal from such order may be exercised and shall be allowed as in
other special proceedings, and pending any such appeal the rights of all
parties shall be preserved. (1913, c. 90, s. 14; 1915, c. 245; 1919, c. 82, s. 5;
C.S., s. 2410; 1999-456, s. 59; 2000-140, s. 42(e).)

§ 43-37. Owner's certificate
presented with transfer.

In voluntary transactions the
owner's certificate of title must be presented along with the writing or
instrument conveying or effecting the sale, and thereupon and not otherwise the
register shall be authorized to register the conveyance or other transaction
upon proof of payment of all delinquent taxes or liens, if any, or if such
payment be not shown the entry and new certificate shall note such taxes or
liens as having priority thereto. (1913, c. 90, s. 15; C.S., s. 2411.)

§ 43-38. Transfers probated;
partitions; contracts.

All transfers of registered
land shall be duly executed and probated as required by law upon like
conveyances of other lands, and in all cases of change in boundary by
partition, subtraction or addition of land there shall be an accurate survey
and permanent marking of boundaries and accurate plots, showing the courses,
distances and markings of every portion thereof, which shall be duly proved and
registered as upon the initial registration. Such transfers shall be presented
to the register of deeds for entry upon the consolidated real property records
and upon the owner's certificate within 30 days from the date thereof, or
become subject to any rights which may accrue to any other person by a prior
registration. All leases or contracts affecting land for a period exceeding
three years shall be in writing, duly proved before the clerk of the superior
court, recorded in the register's office, and noted upon the registry and upon
the owner's certificate. (1913, c. 90, ss. 15, 32; C.S., s. 2412; 2000-140, s.
42(f).)

§ 43-39. Certified copy of
order of court noted.

In voluntary transactions a
certificate from the proper State, county or court officer, or certified copy
of the order, decree or judgment of any court of competent jurisdiction shall
be authority for him to order a proper notation thereof upon the consolidated
real property records, and for the register of deeds to note the transaction
under the direction of the court. (1913, c. 90, s. 16; C.S., s. 2413; 2000-140, s.
42(g).)

§ 43-40. Production of
owner's certificate required.

Whenever owner's certificate
is not presented to the register along with any writing, instrument or record
filed for registration under this Chapter, he shall forthwith send notice by
registered mail to the owner of such certificate, requesting him to produce the
same in order that a memorial of the transaction may be made thereon; and such
production may be required by subpoena duces tecum or by other process of the
court, if necessary. (1913, c. 90, s. 17; C.S., s. 2414.)

§ 43-41. Registration notice
to all persons.

Every voluntary or involuntary
transaction, which if recorded, filed or entered in any clerk's office would
affect unregistered land, shall, if duly registered in the office of the proper
register as the case may be, and not otherwise, be notice to all persons from the
time of such registration, and operate, in accordance with law and the
provisions of this Chapter, upon any registered land in the county of such
registration. (1913,
c. 90, s. 18; C.S., s. 2415.)

§ 43-42. Conveyance of
registered land in trust.

Whenever a writing, instrument
or record is filed for the purpose of transferring registered land in trust, or
upon any equitable condition or limitation expressed therein, or for the
purpose of creating or declaring a trust or other equitable interest in such land,
the particulars of the trust, condition, limitation or other equitable interest
shall not be entered on the certificate, but it shall be sufficient to enter in
the consolidated real property records and upon the certificates a memorial
thereof by the terms "in trust" or "upon condition" or in
other apt words, and to refer by number to the writing, instrument or record
authorizing or creating the same. And if express power is given to sell,
encumber or deal with the land in any manner, such power shall be noted upon
the certificates by the term "with power to sell" or "with power
to encumber," or by other apt words. (1913, c. 90, s. 19; C.S., s. 2416; 2000-140, s.
42(h).)

§ 43-43. Authorized transfer
of equitable interests registered.

No writing or instrument for
the purpose of transferring, encumbering or otherwise dealing with equitable
interests in registered land shall be registered unless the power thereto
enabling has been expressly conferred by or has been reserved in the writing or
instrument creating such equitable instrument, or has been declared to exist by
the decree of some court of competent jurisdiction, which decree must also be
registered. (1913,
c. 90, s. 20; C.S., s. 2417.)

§ 43-44. Validating
conveyance by entry on margin of certificate.

In all cases where the owner
of any estate in lands, the title to which has been registered or attempted to
be registered in accordance with the provisions of this Chapter, has before
August 21, 1924, and subsequent to such registration made any conveyance of
such estate, or any portion thereof, by any form of conveyance sufficient in
law to pass the title thereto if the title to said lands had not been so
registered, the record owner and holder of the certificate of title covering
such registered estate may enter upon the margin of his certificate of title in
the consolidated real property records a memorandum showing that such
registered estate, or a portion thereof, has been so conveyed, and further
showing the name of the grantee or grantees and the number of the book and the
page thereof where such conveyance is recorded in the office of the register of
deeds, and make a like entry upon the owner's certificate of title held by him,
both of such entries to be signed by him and witnessed by the register of
deeds, and attested by the seal of office of the register of deeds upon said
owner's certificate, with the further notation made and signed by the register
of deeds on the margin of the certificate of title in the consolidated real
property records showing that such entry has been made upon the owner's
certificate of title, and thereupon such conveyance shall become and be as
valid and effectual to pass such estate of the owner according to the tenor and
purport of such conveyance as if the title to said lands had never been so
registered, whether such conveyance be in form absolute or upon condition of
trust; and in all cases where such conveyance has been made before August 21,
1924, upon the making of the entries herein authorized by the record owner and
holder of such owner's certificate of title, the grantee and his heirs and
assigns shall thereafter have the same right to convey the said estate or any
part of the same in all respects as if the title to said lands had never been
so registered. (Ex.
Sess. 1924, c. 41; 2000-140, s. 42(i).)

Article 7.

Liens upon Registered
Lands.

§ 43-45. Docketed judgments.

Whenever any judgment of the
superior court of the county in which the registered estate is situated shall
be duly docketed in the office of the clerk of the superior court, or any lien
or notice of lis pendens is filed in the office of the clerk of the superior
court, it shall be the duty of the clerk, upon the request of any interested
party, to certify the same to the register of deeds. The register of deeds
shall enter upon the certificate of title, the date, and the amount of the
judgment, and the same shall be a lien upon such land as fully as such docketed
judgment would be a lien upon unregistered lands of the judgment debtor, and
the register of deeds is authorized to recover the certificate of title
pursuant to G.S. 43-40. The register of deeds shall also enter notice of the
judgment, lien, or lis pendens on the record copy of the certificate of title,
and the encumbrance is valid against the registered estate from the time it is
noted on the record copy. (1913, c. 90, s. 22; C.S., s. 2418; 1999-59, s. 6.)

§ 43-46. Notice of delinquent
taxes filed.

It shall be the duty of the
tax collector of each taxing unit, not later than June 30 following the date
the taxes became delinquent, to file an exact memorandum of the delinquency, if
any, of any registered land for the nonpayment of the taxes or assessments
thereon, including interest, in the office of the register of deeds for
registration; and if such officer fails to perform such duty, and there shall
be subsequent to such day a transfer of the land as hereinbefore provided, the
grantee shall acquire a good title free from any lien for such taxes and
assessments, and the collector and his sureties shall be liable for the payment
of the taxes and assessments with the interest thereon. The register of deeds
shall enter the notice of delinquency on the record copy of the certificate of
title, and the tax lien shall be valid against the registered estate from the
time it is noted on the record copy. The register of deeds shall enter the
notice of cancellation of the tax lien on the record copy of the certificate of
title upon presentation of satisfactory evidence of payment. (1913, c. 90, s. 21; C.S., s.
2419; 1999-59, s. 7; 2000-140, s. 9.)

§ 43-47: Repealed by Session
Laws 1999-59, s. 8.

§ 43-48. Foreclosure of tax
lien.

The lien for ad valorem taxes
may be foreclosed and the property sold pursuant to G.S. 105-375. A note of the
sale under this section shall be duly registered, and a certificate shall be
entered and an owner's certificate issued in favor of the purchaser in whom
title shall be thereby vested as registered owner, in accordance with the
provisions of this Chapter. Nothing in this section shall be so construed as to
affect or divert the title of a tenant in reversion or remainder to any real
estate which has been returned delinquent and sold on account of the default of
the tenant for life in paying the taxes or assessments thereon. (1913, c. 90, s. 23; C.S., s.
2421; 1999-59, s. 9.)

Article 8.

Assurance Fund.

§ 43-49. Assurance fund
provided; investment.

Upon the original registration
of land and also upon the entry of certificate showing the title as registered
owners in heirs or devisees, there shall be paid to the clerk of the court one
tenth of one percent (0.1%) of the assessed value of the land for taxes, as an
assurance fund, which shall be paid over to the State Treasurer, who shall be
liable therefor upon his official bond as for other moneys received by him in
his official capacity. He shall keep all the principal and interest of such
fund invested, except as required for the payment of indemnities, in bonds and
securities of the United States, of this State, or of counties and other municipalities
within the State. Such investment shall be made upon the advice and
concurrence of the Governor and Council of State, and he shall make report of
such funds and the investment thereof to the General Assembly biennially. When
registration involves the State of North Carolina or any political subdivision
thereof, the local tax collector shall assess the value of the land involved as
if for tax purposes and the amount to be paid to the clerk shall be an amount
equal to one tenth of one percent (0.1%) of such assessed value; provided,
however, that no taxes shall be levied upon such land while title thereto
remains in the State of North Carolina or any political subdivision thereof. (1913, c. 90, s. 33; C.S., s.
2422; 1963, c. 946, s. 2.)

§ 43-50. Action for
indemnity.

Any person who, without
negligence on his part, sustains loss or damage or is deprived of land, or of
any estate or interest therein, through fraud or negligence or in consequence
of any error, omission, mistake, misfeasance, or misdescription in any
certificate of title or in any entry or memorandum in the registration book,
and who, by the provisions of this Chapter, is barred or in any way precluded
from bringing an action for the recovery of such land or interest or estate
therein or claim upon same, may bring an action in the superior court of the
county in which the land is situate for the recovery of compensation for such
loss or damage from the assurance fund. Such action shall be against the State
Treasurer and all other persons who may be liable for the fraud, negligence,
omission, mistake or misfeasance; but if such claimant has the right of action
or other remedy for the recovery of the land, or of the estate or interest
therein, or of the claim upon same, he shall exhaust such remedy before
resorting to the assurance fund. (1913, c. 90, s. 34; C.S., s. 2423.)

§ 43-51. Satisfaction by
third person or by Treasurer.

If there are defendants other
than the State Treasurer, and judgment is rendered in favor of the plaintiff
and against the Treasurer and some or all of the other defendants, execution
shall first be issued against the other defendants, and if such execution is
returned unsatisfied in whole or in part, and the officer returning the same
shall certify that it cannot be collected from the property and effects of the
other defendants, or if the judgment be against the Treasurer only, the clerk
of the court shall certify the amount due on the execution to the State
Treasurer, and the same shall be paid. In all such cases the Treasurer may
employ counsel who shall receive reasonable compensation for his services from
the assurance fund. (1913, c. 90, s. 35; C.S., s. 2424; 1993, c. 257, s. 1.)

§ 43-52. Payment by
Treasurer, if assurance fund insufficient.

If the assurance fund shall be
insufficient at any time to meet the amount called for by any such certificate,
the Treasurer shall pay the same from any funds in the treasury not otherwise
appropriated; and in such case any amount thereafter received by the Treasurer
on account of the assurance fund shall be transferred to the general funds of
the treasury until the amount advanced shall have been paid. (1913, c. 90, s. 36; C.S., s.
2425.)

§ 43-53. Treasurer subrogated
to right of claimant.

In every case of payment by
the Treasurer from the assurance funds under the provisions of this Chapter the
Treasurer shall be subrogated to all the rights of the plaintiff against all
and every other person or property or securities to a trustee, or by the
improper exercise of any power of sale in benefit of the assurance fund. (1913, c. 90, s. 37; C.S., s.
2426.)

§ 43-54. Assurance fund not
liable for breach of trust; limit of recovery.

The assurance fund shall not
be liable to pay any loss, damage or deprivation occasioned by a breach of
trust, whether expressed, constructive or implied, by any registered owner who
is a trustee, or by the improper exercise of any power of sale in a mortgage or
deed of trust. Nor shall any plaintiff recover as compensation under the
provisions of this Chapter more than the fair market value of the land at the
time when he suffered the loss, damage or deprivation thereof. (1913, c. 90, s. 38; C.S., s.
2427.)

§ 43-55. Statute of
limitation as to assurance fund.

Action for compensation from
the assurance fund shall be begun within three years from the time the cause of
action accrued. In cases of infancy or other disability now recognized by law,
persons under such disability shall have one year after the removal of such
disability within which to begin the action. (1913, c. 90, s. 39; C.S., s. 2428.)

Article 9.

Removal of Land from
Operation of Torrens Law.

§ 43-56. Proceedings.

Any land brought under the
provisions and operation of this Chapter before April 16, 1931, may be removed
and excluded therefrom by a motion in writing filed in the original cause
wherein said land was brought under the provisions and operation of said
Chapter, and upon the filing of a petition therein showing the names of all
persons owning an interest in said land and of all lien holders, mortgagees and
trustees of record, and the description of said land. Upon the filing of said
petition the clerk of the superior court shall issue a citation to all parties
interested and named in the petition, and upon the return date of said citation
and upon the hearing of said motion, the said clerk of the superior court may
enter a decree in said cause removing and excluding said land from the
provisions and operation of this Chapter, and transfer and conveyance of said
land may be made thereafter as other common-law conveyances. (1931, c. 286, s. 1.)

§ 43-57. Existing liens
unaffected.

Nothing in G.S. 43-56 shall be
construed to impair or remove any lien or encumbrance existing against said
land. (1931, c.
286, s. 3.)

§§ 43-58 through 43-62.
Reserved for future codification purposes.

Article 10.

Instruments Describing
Party as Trustee or Agent.

§ 43-63. When instrument
describing party as trustee or agent not to operate as notice of limitation
upon powers of such party.

When any instrument affecting
title to real estate describes a party as trustee or agent, or otherwise
indicates that a party is or may be acting as trustee or agent, but does not
indicate any beneficial interest, set forth his powers or specify some other
recorded instrument setting forth such powers and the place in the public
records where it is recorded, and there is no recorded instrument in the record
chain of title to such real estate setting forth such powers, then the
description or indication shall not be notice to any person thereafter dealing
with the real estate of any limitation upon the powers of the party nor require
any inquiry or investigation as to such trust or agency. Such trustee or agent
shall be deemed to have full power to convey or otherwise dispose of the real
estate; and no person interested under such trust or agency shall be entitled
to make any claim against the real estate based upon notice given by such
description or indication. This Article shall not prevent claims against the
trustee or agent or against property other than the real estate. (1975, c. 181, s. 1.)

This Article shall apply to
instruments recorded before or after May 15, 1975, but shall not bar any claim
based on notice given by any instrument if, within one year after May 15, 1975,
a written notice of the claim is recorded, identifying the place in the public
records where the reference to a fiduciary may be found, stating the powers of
such fiduciary, and naming the person who is then the record owner of the real
estate affected. Such notice of claim shall be signed and acknowledged by the
person executing the same, and may be executed by any person interested under
such trust or agency, or by his attorney, agent, guardian, conservator, parent,
or any other person acting on his behalf, if for any reason he is unable to
act. The notice of claim shall be recorded and indexed under the name of the
person declared therein to be the record owner.